Nextraction Energy Corp.

Nextraction Energy Corp.

March 04, 2011 17:30 ET

Nextraction Provides Update on Private Placements

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 4, 2011) -


Nextraction Energy Corporation (TSX VENTURE:NE) ("Nextraction" or the "Company") announces that it is proceeding with aggregate private placements of up to $6 million as previously announced.

The $2.5 million bought deal financing of units ("Units") of the Company announced on March 1, 2011, with each Unit consisting of one common share (a "Common Share") in the capital of the Company and one Common Share (a "Flow-through Share") issued on a "flow-through" basis under the Income Tax Act (Canada), will be placed by NCP Northland who completed an agreement with the Company on a bought deal basis. The Units will be issued at a price of $2.16 per Unit, with each Common Share being priced at $1.0005 and each Flow-through Share being priced at $1.1595 (the "Brokered Offering"). This pricing matches the non-brokered placement terms.

The Company clarifies that the non-brokered private placement of up to $3.5 million of Units, as described in press releases dated February 16 and March 1, 2011, is also being completed on a Unit basis, with each Unit being issued at a price of $2.16 per Unit (the "Non-brokered Offering" and together with the Brokered Offering, the "Offerings").

Under the Brokered Offering, the Company will issue $1,157,979 of Common Shares and $1,342,005 of Flow-through Shares for aggregate gross proceeds of $2,499,984 to the Company. Under the Non-brokered Offering, the Company will issue up to $1,621,180 of Common Shares and up to $1,878,819 Flow-through Shares for aggregate gross proceeds of up to $3,499,999 to the Company. The Common Shares and Flow-through Shares issued under the Offerings will have a hold period of four months and a day.

The net proceeds of the Offerings will be used for development of the Company's properties and for general working capital purposes.

The Brokered Offering is scheduled to close on or about March 15, 2011 and the Non-brokered Offering is scheduled to close on or about March 10, 2011. The Offerings are subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange and the securities regulatory authorities.

On behalf of the Board of Nextraction Energy Corp.

Mark S. Dolar, President and CEO

About Nextraction Energy Corp.

Nextraction Energy Corp. is a Canadian junior oil and gas producing company engaged in the exploration and development of oil and gas resources in North America. Nextraction targets projects with known reserves and plays that provide lower risk, high return development opportunities in both conventional and unconventional resource projects, where our technical expertise can be applied to enhance production. The Company has offices in Vancouver, BC, Calgary, Alberta and Golden, Colorado. In addition to the Provost field, Nextraction has current gas production and is currently developing a multi- well tight-sands gas play on the Pinedale Anticline in the Green River Basin region of western Wyoming, a Chattanooga shale gas resource play in eastern Kentucky/Tennessee, and is conducting seismic operations with the intent of commencing exploration efforts for Bakken oil in the Williston Basin.


Certain statements in this document may contain "forward-looking statements" or "forward-looking information" within the meaning of applicable securities legislation. Such forward-looking statements or information include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. The Company does not assume the obligation to update any forward-looking statement, except as required by applicable law.

Such forward-looking statements or information include, without limitation, statements or information about the Company's business strategy and goals, our future capital and other expenditures and requirements, reserves and resources estimates, our drilling plans, seismic activity, production levels and the sources of growth thereof, project development schedules and results, results of exploration activities and dates by which certain areas may be developed or may come on-stream, our future financing and capital activities, contingent liabilities and environmental matters. Often, but not always, forward-looking statements or information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases or words and phrases that state or indicate that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. With respect to forward-looking statements and information contained herein, we have made numerous assumptions including, among other things, the accuracy of recovery rates and production in surrounding areas. Although our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that a forward-looking statement or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, amongst others, general economic conditions, industry conditions, volatility of commodity prices, stock market volatility, imprecision of reserve estimates, environmental risks, the Company's ability to obtain sufficient capital from internal and external sources to fund its proposed drilling program, misjudgments in the course of preparing forward-looking statements or information and those risk factors identified in the Company's Management Information Circular dated September 11, 2008. Should one or more of these risks and uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements and information.

The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons (as defined in Regulation S under the 1933 Act).

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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